The WHAT, WHY, and HOW of Critical Illness plans

The WHAT, WHY, and HOW of Critical Illness Plans

A stressed and hectic day to day life has made us susceptible to a host of lifestyle diseases. Experts claim that one out of 4 Indians is likely to fall prey to non-communicable diseases before the age of 70. A traditional health plan might not be sufficient for such conditions, owing to the high cost of treatment and medication. Here is where a Critical Illness Insurance Policy comes into the picture.

What is a Critical illness Insurance plan?

A Critical Illness Insurance Policy offers cover for your medical treatment and other related expenses for 36 dreaded diseases. It is more comprehensive and better than a Health insurance plan. While a regular health insurance plan reimburses your hospital and medical expenses, the Critical Illness Insurance plan is a benefit plan. It pays you a fixed sum if you are diagnosed with any of the critical illnesses that are covered by the policy.

This type of coverage is also referred to as critical care insurance, critical insurance policy, or basic critical illness insurance, depending on the features and extent of coverage.

Why should you go for a critical illness insurance plan?

Medical treatments are becoming more expensive by the day due to market inflation and the rising costs of medicines. Going to a specialist or an expert doctor is sure to burn a hole in your pocket. As a result, you might opt for a regular doctor or a substandard hospital which is bound to affect the quality of the medical treatment you are receiving. Your Health insurance plan does not cover the doctor's fee, transport and other associated costs. A critical care insurance plan offers you a lump sum in case you fall victim to a critical illness. The extensive cover, thus, means that you can approach the best of the doctors in specialty hospitals without having to worry about the cost of treatment.

How do you select the best Critical Illness policy for you?

Buying a Critical illness plan has been made easy online. We give you three easy steps in which you can decide on the best plan for you-

FAQs on Critical Illness Insurance

Q1. What is a critical illness insurance policy?

A critical illness insurance policy is a health benefit plan that provides a lump sum payout if you are diagnosed with a serious illness listed in the policy. This payment can be used for treatment, recovery, or even household expenses during recovery.

Q2. How is critical illness insurance different from regular health insurance?

Unlike regular health insurance that reimburses hospital expenses, critical illness insurance pays a fixed lump sum upon diagnosis of a covered illness. This gives you financial flexibility to use the money as needed — for treatment, transportation, or income replacement.

Q3. Is it worth purchasing critical illness insurance if I already have health insurance?

Yes. Purchase critical illness insurance as a supplement to your basic health insurance. It ensures you get extra financial support when diagnosed with a serious illness, especially when treatment costs are high and income loss is possible.

Q4. Are premiums paid for critical illness insurance eligible for tax benefits?

Yes. Premiums paid towards a critical insurance policy are eligible for tax deductions under Sections 80C and 80D of the Income Tax Act, 1961.